Tasmania, Australia-based salmon farmer Huon Aquaculture Group reported its full-year 2020 earnings, on Thursday, 27 August, showing increased revenue but clear impacts from the COVID-19 pandemic.
The company posted revenues of AUD 339.9 million (USD 249.5 million, EUR 209.7 million), supported by a 36 percent increase in harvest tonnage. But COVID-19 took a toll on the company’s cash flow, with of AUD 8.4 million (USD 6.1 million, EUR 5.2 million) from the previous corresponding period of AUD 14.5 million (USD 10.6 million, EUR 8.9 million) as a result of reduced revenue in the second half of the year.
"Huon Aquaculture’s financial performance in FY2020 was affected by the significant disruption of two of its main channels to market, wholesale and export, as a number of measures were implemented by the state and federal governments in March 2020 to contain the spread of the COVID-19,” the company said.
Access to export markets were significantly interrupted due to the coronavirus pandemic, and Australia’s lockdown in April and May contributed to the drop in its sales to the wholesale market as a result of restaurants, clubs and food catering industry closures, though there were no disruptions to its own business operations, Huon said.
The company has also announced AUD 64 million (USD 47 million, EUR 40 million) of capital raised through the sale of shares at AUD 3.00 (USD 2.20, EUR 1.90) per share. The company said the placement will result in 21.3 million new shares being issued, representing approximately 24 percent of current issued capital. The placement is fully underwritten by Credit Suisse, it said.
After the results were released, Huon shares dropped to AUD 3.00 (USD 2.20, EUR 1.90) per share, which is down from AUD 4.51 (USD 3.31, EUR 2.78) per share in July.
Huon’s net profit after tax decreased to AUD 3.9 million (USD 2.9 million, EUR 2.4 million) due to a change in channel mix which resulted in an 11 percent fall in average price.
Huon also said FY2021 will “continue to present challenges as economies emerge from the constraints imposed by COVID-19.”
“We are however optimistic about our ability to deliver and continue,” the company said.
Photo courtesy of Huon Aquaculture
